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When S24 came along I like most of us sat down with a spread sheet and started working through the figs of how it would effect me as a Landlord
I really could not believe what I was seeing - in fact I thought I had got it all wrong and there was a fault with my PC
I took my Figs to see a Good Tax Advisor who Is a Landlord and an ex NLA rep
I ran through my figs and my thoughts and I was astonished he agreed with my Figs and my results of Tax over 70%
I am sure my own situation will not be unique
Why is it I see doom and gloom in this sector when others in general don't?
I scratch my head and look at the Blogs and think at times I am missing something here
Please Please tell me why I am so wrong
I know every Landlord is different and if they are small with no other income than BTL, they are fine
But If you are a 40% tax payer and maybe running a company you are so upbeat at the prospects of BTL, you will pay more tax than you have ever done before if you are withdrawing an income to live on
We have a Budget coming. I don't think on this Budget we will see a lot of change
But going forward do you really think the Govt will not attack the sector more? If you think they won't I would like to know why?
BTL sales are down ?? less Landlords are buying ?? so why do you think the prospects are good?
I just don't get this upbeat thing - are none of you worried about what may come?
BTL is a long term investment you have to take a long term view
Please give me the facts why I should not be gloomy
I know my Tax bill for income will be in the region of 55% to 60%
with all the changes I have made to my business but its' still around 20% higher than I am paying now
Taxation of Co
are all possible and prospect of low capital Growth
So please put me right - why am I wrong?
Learn Change and Adapt ?????
``Why is it I see doom and gloom in this sector when others in general Don't``
I humbly suggest DL that this is not so much to do with your approach to BTL
Its to do with your approach to life in general
Change that and you change everything
Jonathan Clarke. http://www.buytoletmk.com
JC if a newbie Landlord looked at my Business as a role model they would say yes please I want a bit of that
I have the cars the holidays and I fly my own aircraft I have Got It and I am greatfull
I like yourself have built up a large business and its profitable
You and I can have Pyjama days when we want them most cant in the UK
I took my wife to work the other day she was working at her head office for the day so I gave her a lift
I normal don't leave the house till after 10 due to traffic but on this morning in question it took me 1.5hrs to travel 9 miles in rush hour
Thank god I don't have to live in the real world
so I do see life in a very good light and I was a happy Teddy Bear until S24 and its reality's
I can not fight Taxation its part of life but when it hits hard on the same profits its not easy to deal with
My mother used to say YOU yell before you have been bitten and that's true
maybe I am yelling too much?
``maybe I am yelling to much``
Yay you got it DL - Spot on - Good bit of self analysis -
Dont be a sour puss anymore .
Tell people the dangers lurking yes but inspire them to maybe have their own aircraft one day
A BTL newbie who starts today may one day have their own aircraft as a result of what you say and advise
That would be a lasting positive legacy surely
I have encouraged New Landlords in the Past I have stood on NLA stands singing the praises of BTL
I just don't have the same enthusim in the sector now JC
I have even thought about leaving the UK for pastures new
I have a place in GIB and it might be time to go
I'd recommend asking your accountant about the benefits of becoming Non-resident regarding CGT.
Hi Bean I purchased my Property in Gib 10 years ago when I was single
The Idier was to become a resident and then avoid IHT
I have now got married so IHT is not a worry now
Income Tax is now my worry not CGT
My business has seen so little growth in 10 years I can move 50% with out creating an issue with CGT and using my allownces too
So its a work in progress situation I should have completed the sales into my company in around 6 years time
My own Loss of direct income will be filled by my pensions
So its going to work ok
I have gifted deposits to the Company so it will be my plan for the Company to repay the Directors loans and pay down my BTL Mortgages
so all in all if my plan works I will be ok
But I never dreamed in a month of Sundays a Tory Govt would give me such problems
I am doing everything I can to sort this Govt Issue out
Not easy but I will not be beaten.
I agree that the taxation of rental income is disgustingly high and not being able to offset interest is extremely unfair. If the income and equity I held in the properties warranted it I would personally seriously consider going non resident for tax purposes. This would cap off the tax at 20% for rental income as a non-resident landlord or the nuclear option would be to go non resident and liquidate the portfolio. I have a feeling S24 will be reversed though as taxing people on income they don't have isn't going to work and the government of the day need a stable market.
if they took away the retrospective S24 I would be a happy women
The reason I am so upbeat is because I don't have to change government policy, I only have to change what I do about it.Why do some people succeed and some people fail when they have the same government, same taxes, same weather, same traffic, same inflation ect. It's because it's not the blowing of the wind that determines the destination it's the set of the sail, the same wind blows on us all.Fortunately the government can't tax knowledge, we are all allowed to educate ourselves and set a better sail. Some will choose not to.
You make a very good point
I have educated myself over S24 and setting up a Company ect
But do you not worry that the Govt Doesn't want the PRS as it is at present
BTL came from a change of Govt Policy starting with the AST
But that could change
You cant sell something or Change your Business If the Govt doesn't want you
I believe they do want a PRS but not in our model
They want Large Co Landlords who Build.